Editorial: California Taxpayers burned again

2013-02-06 16:08:17

When the governmental takes money from taxpayers and other private concerns, the least the public should expect is a full and open accounting. The money also should be spent only on authorized and necessary uses.

The state of California appears to have a problem with these fundamental principles, even as Sacramento collects higher taxes and imposes new fees and regulatory costs.

Last year, for example, it was a $20 million scandal involving funds hidden by the state Department of Parks. Now we learn the California Department of Forestry and Fire Protection improperly diverted $3.66 million from the general fund, and apparently squandered much of it.

When the public's trust is violated over relatively small amounts (not that tens of millions of dollars is insignificant), how can politicians and bureaucrats be trusted to avoid similar temptations when billions are at stake?

Last year, an investigation found that, for up to 13 years, several high-ranking Parks officials committed "conscious and deliberate" acts to hide money in a department slush fund. Subsequently, two top officials were fired, but after an audit and an investigation by state Attorney General, no criminal charges were filed.

"[T]he governor assured us there were no other hidden pots of money to be found in the depths of state government," said state Senate Republican leader Bob Huff of Diamond Bar. "But, just weeks later, we see there's a completely different money-hiding scandal unfolding at Cal Fire."

Cal Fire collected "fire prevention fees," mostly from rural property owners, and stored the money in an account managed by the nonprofit California District Attorneys Association. Cal Fire paid the group to hold the funds rather than deposit the cash in the state's general fund, as required by law, the Los Angeles Times reported.

Gov. Jerry Brown downplayed the latest disclosure, dismissing the story as "boring" and involving only a "few million bucks." At least he agreed to look into the situation and a Department of Finance audit is under way. We hope Mr. Brown treats the matter with the seriousness it demands.

Meanwhile, Republican lawmakers asked the governor to repeal the State Responsibility Area fire fee and issue refunds to property owners who had paid their bills, in light of the discovery that, since 2005, money was improperly diverted from wildfire legal settlements and used to pay a 3 percent fee to the California District Attorneys Association to hold the fund, despite auditors' warnings the diversion was improper.

Republicans in the Legislature say the money from wildfire legal settlements was used for "a wide array of questionable expenditures," including 600 digital cameras and $33,000 racked up at a Pismo Beach luxury resort. The diversion reportedly was halted in 2012, but the money has yet to be turned over.

We agree with state Senate Republicans who have called for an independent investigation by the U.S. Attorney's Office. Trust must be restored. There must be consequences if illegal acts occurred. At this point, the state's credibility for accomplishing either is, at best, suspect.